Chinese tech giant Huawei has just established a new smart car company as it seeks to become a major player in the automotive industry. Notably, the development materialized after it formed a joint venture with China-owned automaker Changan.
Huawei introduces Shenzhen Yinwang Intelligent Technology
According to SCMP, Huawei officially launched Shenzhen Yinwang Intelligent Technology on January 16. It has a registered initial capital of a whopping 1 billion yuan (US$140.3 million), as indicated on the business registry information platform Tianyancha.
It is also worth noting that Huawei fully owns the new smart car company, which focuses on smart car equipment products, AI system integration services, and AI software development, among others. It has an address similar to Huawei’s headquarters in Shenzhen, as noted by CNN Business.
Electric vehicle market entry efforts
Huawei was originally a tech and telecoms giant that focused on smartphones, customer devices, and network equipment production and sales. However, the US’ more stringent export regulations impeded the Chinese company’s growth prospects.
These challenges highly likely prompted Huawei to consider entering a different business field, particularly the electric vehicle industry. Huawei introduced its inaugural battery-electric vehicle in 2021.
In 2023, it launched two new models in the Chinese market, including the Luxeed S7 electric sedan and the Aito M9 electric SUV.
However, Huawei’s entry into the local electric vehicle market seems to be bad timing, considering the intensifying price cuts and overcapacity in China.
Partnership with Changan
Huawei’s move to establish a new smart car unit transpired after it inked a memorandum of cooperation with Changan in November 2023 for a potential new smart car joint venture.
As part of the agreement, the Chinese tech giant pledged to transfer its smart-car system business to a new separate unit with Changan’s investment. Specifically, it aims to “integrate the core technologies and resources of [Huawei’s] smart car solutions into the new company.” Changan reportedly plans to take up to a 40% stake in the business.
Unfortunately, neither Huawei nor Changan confirmed the speculated association of the new business unit with their joint venture. Therefore, it remains unclear if the Shenzhen Yinwang Intelligent Technology is actually part of the November deal.
